EDITORIAL: Fundraisers wise to explore cooperation: Our view

Mar 7, 2010 — The Arizona Daily Star

Mar. 7, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- What's the difference between the United Way of Tucson and Southern Arizona and the Community Foundation for Southern Arizona?

--Both are major fundraisers, giving them considerable influence over where charitable dollars are spent in our region. Their most recent tax returns, from 2007, show the United Way had total revenue of $13 million, while the Community Foundation received $14 million. United Way had $17 million in total assets in 2008, while the foundation had $97 million.

--Both provide dollars to many of the same non-profit groups. A quick check showed they had more than 70 shared recipients in 2007, ranging from the Boys and Girls Clubs to the Community Food Bank, and from Arizona Theatre Co. to the Pima Council on Aging.

--Their focus overlaps. The United Way says its three main areas are education, health and income. The Community Foundation lists education, health, human services, personal development, community enhancement, the arts and the environment.

Even the way they describe their ultimate goal is similar. One talks about creating "lasting solutions" for Tucson, the other about "powerful solutions."

So why, we ask, do we have two organizations doing such similar work?

If ever there's a moment for both groups to answer that question, it's now.

Both are searching for new CEOs during a difficult time for charities. Giving is down, while demand for services such as food, health care and shelter is way up. Good stewardship demands that non-profits be as efficient and effective as possible.

The board chairs of both the United Way and the Community Foundation realize this, and they've formed a group to talk about how they operate.

The United Way's Ron Sable and the Community Foundation's Paul Lindsey told us discussions are in the early stages.

Sable said his aim is to determine how to "cooperate where that works in the best interest of the community."

Lindsey said the two groups should do "exactly what we are asking" of agencies they fund: eliminate duplication and "drive more dollars back into the community."

Could they share facilities and health-insurance plans? Do joint training? Develop a common application and review process for agencies seeking funding? Those are the kinds of questions the group might look into.

What about a merger? "I naturally shy away a little bit from the term 'merger,' " Sable said, because it can spur turf fights. Also, the two groups don't have the same tradition.

United Way is best known for its workplace campaigns. Many small donors contribute via payroll deductions, and the money tends to go right back out to charities.

The Community Foundation mostly works with individuals. It connects them to groups and causes that match their interests, and it manages and invests their donations. In a way, it's about helping donors become smart philanthropists.

While that's the tradition of the two organizations, the line between them isn't so bright these days. Plenty of people give money to both.

There's certainly no ground-swell across the country for mergers, but one did happen recently in the Midwest, where the United Way and Community Foundation of Northwest Iowa serves about 29,000 people. The two boards began talking in 2005 about ways to reduce overhead, and that ultimately led to the decision to merge, said Randy Kuhlman, CEO of the new group.

He said differences between the two sides of the house remain: The United Way focuses on human services, while the foundation has a broader reach; tax laws as well as the way money comes in and goes out mean they keep accounting separate; and the joint operation is "a little bit more confusing" to donors because fewer people understand what a foundation does. On the plus side, the two groups were talking to many of the same prospective donors and "we've completely eliminated that competition," Kuhlman said.

At the end of the day, the combination works because their missions are so similar, he said. "Both organizations are all about improving the quality of life in our community."

The two Tucson groups are doing the right thing by talking, and they won't go wrong if they keep their eyes on creating lasting and powerful solutions for our community.

Arizona Daily Star

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